The assets under management of Exchange Traded Funds and index funds tracking Nifty 50 index crossed a new high of ₹2 lakh crore with passive funds linked to the index accounting for 40 per cent share of total passive funds AUM in India.
Currently, there are 17 ETFs and 19 index funds tracking the Nifty 50 index in India and 7 ETFs in the international markets.
Passive funds in India
Passive funds AUM in India has increased to ₹4.99 lakh crore by March-end from ₹52,368 crore in March, 2017, registering an annualised growth rate of 57 per cent.
During this period, the number of passive funds in India increased to 228 from 84. Passive funds had registered highest inflow of ₹1.28 lakh crore with 82 new passive products launched last fiscal.
Vikram Limaye, Managing Director, NSE said the exchange believes that passive funds are well suited for retail and institutional investors and will continue to promote passive funds.
Mukesh Agarwal, CEO, NSE Indices said adoption of passive funds in India is increasing on a continuous basis as evident from the large number of new folios created in the last couple of years. Last fiscal, the exchange launched 34 new indices which will provide more choices for investors to invest in ETFs and index funds linked to these indices, he said.